Critical Contrast: AB Volvo (publ) (OTCMKTS:VLVLY) & Polestar Automotive Holding UK (NASDAQ:PSNY)

Polestar Automotive Holding UK (NASDAQ:PSNY) and AB Volvo (publ) (OTCMKTS:VLVLY) are both auto/tires/trucks companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.

Risk & Volatility

Polestar Automotive Holding UK has a beta of 1.54, indicating that its share price is 54% more volatile than the S&P 500. Comparatively, AB Volvo (publ) has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500.

Insider & Institutional Ownership

1.0% of Polestar Automotive Holding UK shares are held by institutional investors. Comparatively, 0.0% of AB Volvo (publ) shares are held by institutional investors. 0.0% of Polestar Automotive Holding UK shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Polestar Automotive Holding UK and AB Volvo (publ)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Polestar Automotive Holding UK	N/A	N/A	N/A
AB Volvo (publ)	9.64%	29.91%	7.39%

Earnings and Valuation

This table compares Polestar Automotive Holding UK and AB Volvo (publ)”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Polestar Automotive Holding UK	$2.38 billion	1.10	-$1.19 billion	($0.57)	-2.16
AB Volvo (publ)	$52.11 billion	1.02	$4.70 billion	$2.42	10.82

AB Volvo (publ) has higher revenue and earnings than Polestar Automotive Holding UK. Polestar Automotive Holding UK is trading at a lower price-to-earnings ratio than AB Volvo (publ), indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations and price targets for Polestar Automotive Holding UK and AB Volvo (publ), as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Polestar Automotive Holding UK	2	3	1	0	1.83
AB Volvo (publ)	0	5	2	1	2.50

Polestar Automotive Holding UK presently has a consensus price target of $1.58, suggesting a potential upside of 28.46%. Given Polestar Automotive Holding UK’s higher probable upside, research analysts clearly believe Polestar Automotive Holding UK is more favorable than AB Volvo (publ).

Summary

AB Volvo (publ) beats Polestar Automotive Holding UK on 10 of the 15 factors compared between the two stocks.

About Polestar Automotive Holding UK

Polestar Automotive Holding UK PLC manufactures and sells premium electric vehicles. The company was founded in 2017 and is headquartered in Gothenburg, Sweden.

About AB Volvo (publ)

AB Volvo (publ), together with its subsidiaries, manufactures and sells trucks, buses, construction equipment, and marine and industrial engines in Europe, the United States, Asia, Africa, and Oceania. The company provides heavy-duty trucks for long-haulage and construction work and light-duty trucks for distribution purposes under the Volvo, Renault Trucks, Mack, Eicher, and Dongfeng Trucks brands; and city and intercity buses, coaches, and chassis under the Prevost and Volvo Bus brands. It offers road construction machine, haulers, wheel loaders, excavators, and compact equipment. In addition, the company offers engines and power solutions for leisure and commercial vessels, as well as for power generation, industrial, and off-highway applications under the Volvo Penta brand name. Further, it provides financing, insurance, rental, spare parts, repairs, preventive maintenance, service agreement, and assistance services. The company offers its products and services through a network of dealerships and workshops. It has a strategic alliance with Isuzu Motors within commercial vehicles; a partnership with Samsung SDI Co to develop batteries for its electric products; and an agreement with Aurora to develop autonomous trucks. AB Volvo (publ) was incorporated in 1915 and is headquartered in Gothenburg, Sweden.